An economy is essentially a byproduct of monetary transactions. Money comes in, money is spent on services. Money is lent, money is spent, money is paid back with interest. These are the fundamental parts of the system.
Investing relies on the economy and we hope the economy grows in a healthy way. However, every investor should be prepared to weather a storm. Unfortunately, due to extreme amounts of lending and not paying back these loans in the western world, things are getting pretty scary out there. Is a crash imminent? I can’t say. What I can tell you is, by keeping your personal economy strong you can be prepared for this.
Lately, I’ve cut spending on items that don’t produce value. I’m spending more on investments, saving more liquid cash, and seeking novel ways to grow my money. If everyone were to do this, the economy would slow. The few FIRE minded people out there can benefit if they jump on this opportunity while the economy is strong; your money will go further when it’s not.
It may sound like I’m not enjoying the fruits of my labour, but I am:
- Getting more enjoyment out of the things that I have
- Finding joy and new experiences in starting businesses
- Focusing on internal growth. (Go to your local library and get a book. Do it now!)
I really enjoy seeing my net worth increase and learning, so this is easy work for me. If it’s not your cup of tea, I hope you can see the light at the end of the tunnel and can grow your own way.
Look at your personal economy and see how you can make it stronger, more robust, and be prepared to weather any storm. When the downpour starts, you’ll be happy knowing you came prepared and can hit it full on.
Okay, so I’m going to humble myself really quick. I don’t know shit about Financial Independence/Early Retirement. I’m new to the idea, and I haven’t even gotten close yet. There is so much passion coming from the people involved in this idea, they study every aspect of how to make the dream the reality. These people are the sensei to my samurai; seriously. These people love the journey and the result.
However, maybe I just don’t see the raw excitement coming from some when they reach financial independence. I guess it’s sort of like winning a race; you’ve reach the end, you feel good but you’re gearing up for the next one. I really hope when I reach FI that I can showcase my passions and really share the experience with anyone who will listen. FI is when you earn true freedom and you really get to own every minute of your life. Yell about it! Tell everyone! Say everything!
I know a lot of the publications I read are tailored to their viewer, but I’d love to hear about how amazing the end result is! Listen to a podcast that makes me want to pickup my keyboard, throw it across the room and go buy motorbike and drive across south america. Maybe finance isn’t emotionally exciting, but it could be, you know?
Maybe I’m just being a dick and ranting. Maybe I’m showing my thrill seeking behaviour. Whatever. Hopefully I can bring some fire to FIRE.
Stay tuned for more heat.
I’ve been reading http://www.reddit.com for a long time. Typically I’d waste time reading useless junk. I mean I still do, but I used to, too. All jokes aside, there is a tonne of great resources on Reddit and tonnes of talented people. Find me at /u/torontosurvivalguide
Below are some subreddits that contain a treasure trove of useful information to help make you more self-sufficient:
I hope you find something you like!
There is more to life than working and spending money.
Although my blog is very new, it’s something I’ve been planning on for a while. I read a lot of blogs and learn so much from bloggers that I wanted to pass on things I’ve learned. I’m big on self improvement and bettering myself, and have found techniques that anyone can use.
My biggest inspiration has to be Jacob at http://earlyretirementextreme.com/. Jacob’s no-nonsense, logical approach to cutting costs and life optimization is excellent. He’s a much better writer than myself, and has a better handle on solving complex problems. Hopefully, I can reach his level someday.
I read his blog daily, and finally ordered his book. I can’t wait to get my hands on it and absorb as much as I can. Everyone has a source of inspiration; what’s yours?